As Houston contends with a $320 million budget deficit heading into the new fiscal year, Mayor John Whitmire plans to offer municipal employees a retirement payout as officials look for ways to cut costs.

The retirement incentive comes on the heels of a hiring freeze. The city faces a more than $330 million projected budget deficit heading into the next fiscal year.

Houston is offering voluntary buyouts to retirement-eligible employees to tackle budget challenges while avoiding layoffs.

The mayor told ABC13 that public safety, including Houston's fire and police departments, will be spared, but all other departments will be subject to the hiring freeze.